Stock Analysis

Does Wynn Resorts' (NASDAQ:WYNN) CEO Salary Compare Well With The Performance Of The Company?

  •  Updated
Source: Shutterstock

Matt Maddox became the CEO of Wynn Resorts, Limited (NASDAQ:WYNN) in 2018, and we think it's a good time to look at the executive's compensation against the backdrop of overall company performance. This analysis will also look to assess whether the CEO is appropriately paid, considering recent earnings growth and investor returns for Wynn Resorts.

View our latest analysis for Wynn Resorts

Comparing Wynn Resorts, Limited's CEO Compensation With the industry

Our data indicates that Wynn Resorts, Limited has a market capitalization of US$12b, and total annual CEO compensation was reported as US$14m for the year to December 2019. We note that's a decrease of 19% compared to last year. While this analysis focuses on total compensation, it's worth acknowledging that the salary portion is lower, valued at US$2.0m.

In comparison with other companies in the industry with market capitalizations over US$8.0b , the reported median total CEO compensation was US$11m. This suggests that Wynn Resorts remunerates its CEO largely in line with the industry average. Moreover, Matt Maddox also holds US$50m worth of Wynn Resorts stock directly under their own name, which reveals to us that they have a significant personal stake in the company.

Component20192018Proportion (2019)
Salary US$2.0m US$1.9m 14%
Other US$12m US$15m 86%
Total CompensationUS$14m US$17m100%

On an industry level, around 25% of total compensation represents salary and 75% is other remuneration. In Wynn Resorts' case, non-salary compensation represents a greater slice of total remuneration, in comparison to the broader industry. It's important to note that a slant towards non-salary compensation suggests that total pay is tied to the company's performance.

NasdaqGS:WYNN CEO Compensation December 8th 2020

A Look at Wynn Resorts, Limited's Growth Numbers

Over the last three years, Wynn Resorts, Limited has shrunk its earnings per share by 85% per year. It saw its revenue drop 54% over the last year.

Overall this is not a very positive result for shareholders. And the fact that revenue is down year on year arguably paints an ugly picture. So given this relatively weak performance, shareholders would probably not want to see high compensation for the CEO. Looking ahead, you might want to check this free visual report on analyst forecasts for the company's future earnings..

Has Wynn Resorts, Limited Been A Good Investment?

With a three year total loss of 28% for the shareholders, Wynn Resorts, Limited would certainly have some dissatisfied shareholders. So shareholders would probably want the company to be lessto generous with CEO compensation.

To Conclude...

As previously discussed, Matt is compensated close to the median for companies of its size, and which belong to the same industry. Meanwhile, EPS growth and shareholder returns have been in the red for the last three years. Considering overall performance, shareholders will likely hold off support for a raise until results improve.

CEO compensation is an important area to keep your eyes on, but we've also need to pay attention to other attributes of the company. That's why we did our research, and identified 2 warning signs for Wynn Resorts (of which 1 is concerning!) that you should know about in order to have a holistic understanding of the stock.

Important note: Wynn Resorts is an exciting stock, but we understand investors may be looking for an unencumbered balance sheet and blockbuster returns. You might find something better in this list of interesting companies with high ROE and low debt.

When trading Wynn Resorts or any other investment, use the platform considered by many to be the Professional's Gateway to the Worlds Market, Interactive Brokers. You get the lowest-cost* trading on stocks, options, futures, forex, bonds and funds worldwide from a single integrated account. Promoted

Valuation is complex, but we're helping make it simple.

Find out whether Wynn Resorts is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.

View the Free Analysis